Somewhere, Bernie Madoff is thinking to himself: Gee, if I’d only classified myself as a hedge fund or PE firm, I could’ve just halted withdrawals when times got tough. Cerberus, the private equity firm best-known for its ill-timed acquisition of Chrysler, has told clients they’ll have to wait to get their money out:
Reuters: Cerberus Capital Management CBS.UL plans to pay 20 per cent of year-end withdrawals in cash and suspend the remaining withdrawals for investors in its Cerberus Partners fund, television network CNBC said on Tuesday.
Cerberus plans to suspend year-end withdrawals for up to one year, CNBC said, citing a letter from Cerberus founder Stephen Feinberg to the investors of the fund.
Here’s CNBC’s video report.
Several alternative asset managers have done the same thing, lately, most notably Citadel.